Top 10 Hot Residential Property Investment Destinations in India..!

As
India’s urbanization picks up speed, the traditionally-preferred property
investment locations in most of the main cities are getting saturated and
increasingly expensive. This is having a roll-on effect on many other
residential sub-markets across leading Indian cities.

Even as more and more
locations go out of the reach of a certain cross-segment of buyers that
preferred it in the preceding years, other emerging areas come to the rescue.

Moreover,
with the expansion of business districts and different office space occupier
categories preferring newer business precincts to older ones, certain
residential sub-markets in the primary cities have been finding favour from an
increasing number of buyers – and, consequently, property investors.

Such
sub-markets tend to offer a marked price advantage vis-à-vis the more
established locations – and the residential projects coming up there are
compliant with the latest development laws and tend to have more contemporary
amenities. All these ‘pull factors’ lead to such locations seeing good sales
traction independent of the rate at which sales are taking place at the
city level.

Mumbai
Metropolitan Region (MMR)- Malad is witnessing massive
sales in the ‘compact homes’ category – which offers increased affordability
within the city limits – and due to the area’s proximity to some of the
suburban office districts, Kharghar is seeing higher sales due
to a good supply of apartments at relatively lower entry prices when compared
to some of the more established locations within Navi Mumbai. Good
infrastructure, connectivity to prime office locations of Navi Mumbai and
access to both Mumbai and Pune also favour Kharghar.

Thane’s Ghodbunder
Road has, for quite a few years now, been the hotbed of residential
activity in this part of the Mum bai Metropolitan Region. While the further
stretches of Ghodbunder Road offer good budget housing options to a large
section of home buyers, other stretches offer ultra-luxurious projects along
with an evolved social and physical infrastructure due to several years of
development. Ghodbunder Road also offers very good connectivity to the extended
Western suburbs on one side and the office corridors of Thane and Navi Mumbai
on the other. This important transit route connects Ahmedabad highway on one
end to Agra highway on the other.

Similarly, Pokhran
Road is emerging as the next Ghodbunder Road in Thane and offers
several housing options suiting the varied requirements of home buyers in this
region. Both these locations will see sustained sales momentum on the back of
their very favourable market drivers.

PUNE- In Pune, Hinjewadi and Kharadi offer
reasonably good affordability in proximity to the city’s major Infotech
corridors. Both areas have witnessed a steady increase in the number of
customer enquiries as developers come up with affordable as well as upper mid
and high segment projects, coupled with enticing offers to lure customers. As
more affordable and mid-segment housing projects enter the market, these
locations will continue witnessing greater traction than many other areas of
Pune in the years ahead.

Bangalore- Kanakapura Road in the southern part
of India’s IT city of Bangalore is known to be mid-segment buyers’ preferred
destination, and is now witnessing the launch of high-end projects as well.
Many more such projects are being planned as the metro construction is expected
to finish by end of 2018. The transit route will be a major boost to the area
and resolve existing connectivity issues to a large extent.

Varthur is another location
attracting mid-segment buyers in large numbers. Along with Sarjapur
Road, Varthur offers proximity to the key office areas in Whitefield, Electronic
City and Koramangala. Being a part of the Outer Ring Road, these two areas have
benefited significantly from the growth of IT corridors along this important
route. Coupled with the affordable prices in most residential projects, both
these locations will remain a hit with end-users and investors.

Hyderabad- Hyderabad’s Gachibowli area
has emerged as a destination with a reputation of having all that a home buyer
can ask for - suitable property prices, proximity to DLF Cyber City –
Hyderabad’s first IT SEZ – as well as HITEC city, and well-developed physical
and social infrastructure. Gachibowli also has good access to the airport via
Outer Ring Road.

There
are obviously a number of other destinations across India’s vast geography that
are drawing the interest of investors today - these hotspots highlight what is
working best in only four of the major cities. On a larger level, what is
driving investment sentiment in these and other attractive property markets of
India are

·Affordability

·Transit
infrastructure resulting in better connectivity to major workplace hubs, and

·Improving
social infrastructure.

Together,
these factors contribute to a good quality of life for end-users, upping their
desirability quotient and therefore attractiveness to property investors
focused on both capital appreciation and potential rental income.

Investment
Mantra

A
basic premise of successful residential property investment in India is that
areas which are emerging - in other words, in the earlier stages of development
- can yield better returns to established corridors, where price growth
potential may have saturated. Established micro-markets will sooner or later
'peak out' when it comes to capital value appreciation. Once this peak is
reached, the rate of growth will either reduce or stagnate.

Another
factor which tends to be at play in most established areas is that there may be
little or no scope for new market drivers like office buildings,
malls or transit infrastructure to come in, even as prices stay on the higher
side because of lack of new supply.

Needless
to say, this kind of scenario is not optimal from a property investment
perspective - which, in India, tends to revolve largely around capital price
growth. For residential property to reap good capital appreciation, the entry
point must be suitably low even as the potential for future growth in a
reasonable period of time remains promising.